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Wellness Programs Keep Health-Care Costs Down, Raise Morale
07/ 12/ 2005

by Steve Strauss

With the high cost of health care these days, businesses are increasingly on the lookout for ways to cut medical costs. One of the newest and best is the advent of wellness programs in the workplace. These innovative programs offer an excellent way to keep health-care costs down while also bringing morale up.

Indeed, wellness programs are on the rise across the country. According to the Small Business Administration, more than 80 percent of businesses with 50 or more employees have adopted some form of health/wellness programs. The most popular types?

  • Weight reduction/exercise
  • Stress management
  • Smoking cessation
  • Back care

Bottom line benefits
Not only are these programs popular among employees for obvious reasons, their positive affect on the bottom line has made them equally popular with management. The evidence from big and small companies who have adopted wellness programs shows significant savings in insurance premiums and time lost due to illness.

  • DuPont found that its wellness program saved $1.42 for every dollar invested.
  • Providence Health Care in Washington found a 28 percent reduction in the use of its health-care plan as a result of instituting a “wellness challenge.”
  • A wellness program instituted at Berk-Tec, a manufacturing plant with 1,000 employees, reduced health-care costs in one year by an average of 18 percent.
  • A municipality in California offered classes and fitness training in an attempt to reduce back problems among staff. Workers’ compensation claims went down, as did medical costs and sick days related to back injuries.

So, the savings to your company from instituting health and wellness programs are very real. The benefits go beyond monetary savings to include reduced absenteeism, higher productivity, fewer injuries and increased morale.

Given all of these benefits, the question becomes: How do you implement such a program in your workplace?

Starting a program
Begin by choosing someone to coordinate the program –– either you, the head of your human resource department or some other competent person. Whoever it is, it should be someone who is enthusiastic about health and exercise. Depending upon the size of your business, you may even want to appoint a wellness committee. Then, you need to come up with a reasonable budget for the program. Remember, for every dollar spent, you’ll save far more down the road.

The person or people in charge should figure out the goals of the program and which types of classes might be the most popular in your business. Ideas to consider include:

  • Fitness classes
  • First-aid courses
  • Healthy eating classes
  • Stress reduction
  • Smoking cessation

Wellness programs may also consist of bringing in healthier food and snacks, booking speakers and organizing health-oriented events and contests.

Some employees will resist; others will be enthusiastic. That’s fine. Some internal marketing will be required. The key is to make the program fun, educational and flexible. Do that, and watch your workplace change in a variety of healthy ways.
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